(Reuters) -Dollar Tree CEO Rick Dreiling has stepped down after nearly two years in the role and operating chief Michael Creedon Jr will replace him on an interim basis, the company said on Monday.
Shares of the company, which are down about 53% this year, rose 7% in extended trading.
Dreiling also relinquished his position as chairman, and Lead Independent Director Edward Kelly has been elected to take on the role.
Dreiling decided to step away as his health presented some new challenges over the past two months, a company statement said.
The company said it was scouting for a permanent CEO, from among internal and external candidates.
Dollar Tree (NASDAQ:DLTR) also reiterated its forecast for the third quarter and said it was committed to complete the review of strategic options, which included a potential sale or spin off of its Family Dollar segment.
Discount retailers like Dollar Tree and Dollar General (NYSE:DG) are facing stiff competition from retailers including Walmart (NYSE:WMT), Target and PDD Holding's e-commerce platform Temu as they keep prices low to attract cost-conscious consumers.
Earlier this year, Dollar Tree had outlined plans to shutter 970 Family Dollar stores and as of Aug. 3, it shuttered about 655 stores and said in September that it would close 45 stores through the remainder of the year.